Tether Reports $10B+ YTD Profit And $6.8B Excess Reserves

Core Insights - Tether reported a year-to-date profit exceeding $10 billion and excess reserves of $6.8 billion as of September 30, 2025, confirming the strength of its reserves backing USDT [1][4] - The company’s total reserves were $181.22 billion, with liabilities at $174.45 billion, indicating a healthy reserve ratio [2][3] - USDT issuance increased by over $17 billion in Q3, with circulating supply surpassing $174 billion and later exceeding $183 billion in October [2] Reserves and Asset Composition - Tether's exposure to U.S. Treasuries is approximately $135 billion, positioning it among the top sovereign holders [3] - The reserve mix includes $12.9 billion in gold and $9.9 billion in Bitcoin, accounting for roughly 13% of total reserves [3] - Proprietary investments in sectors like AI and renewable energy are excluded from the assets backing USDT [3] Management and Corporate Actions - Management reported that reserve assets exceeded liabilities by $6.78 billion at the end of Q3, with a global user base exceeding 500 million [4] - The company settled litigation with Celsius using proprietary investment capital, indicating that token reserves remained unaffected during the period of increased USDT issuance [6] - Tether launched a share buyback initiative and is approaching $30 billion in proprietary equity while maintaining a multi-billion-dollar excess-reserve buffer [6] Regulatory Developments - Tether Holdings has applied for an Investment Fund License in El Salvador, aiming to expand regulated activities while managing reserves [7] - The filing is part of a broader strategy to enhance the regulatory framework surrounding Tether's operations [7] Market Confidence - The CEO emphasized the continued trust in Tether's model, highlighting USDT as a reliable and liquid digital dollar amid challenging macroeconomic conditions [5]